HECM

Must be the most popular and common type of reverse mortgage between the three categories. A HECM is insured and run by an FHA or Federal Housing Administration.

All the funds you’ll receive through HECM can be used for any purpose such as medical expenses, buying a new house, house repairs, and maintenance, settling debts, retirement funds, and many other reasons as you can.

Although it is widely available, some senior homeowners might not be eligible for this type of reverse mortgage due to certain restrictions. Since it is run by the government, approval for this loan is not easy because of its tight regulations.

Borrowers must comply and attend HUD approve counseling to get qualify for home equity conversion mortgages.